For decades, all classes of commercial real estate in Dallas enjoyed somewhat lopsided advantages over Fort Worth. Until about 15 years ago, Dallas, the main beneficiary of the job, housing and population growth coming to the metroplex, commanded the lion’s share of demand from commercial real estate users while also having more capital for new development. Retail was no exception. Today, the Dallas area has seen its retail scene push northward toward Plano and Frisco, the new hubs of corporate relocations and regional workforce consolidations. But the combination of a shortage of developable land and a tight vacancy rate within the Interstate 635 loop is pushing rents. On a triple-net basis, rates are now as high as $60 per square foot in top submarkets like Uptown, Lakewood and Deep Ellum and $90-plus per square foot in the tony Preston Hollow and Park Cities submarkets, according to HSM’s research. Our data also shows that the average retail vacancy rate within the Interstate 635 loop in Dallas is approximately 2.6 percent, while there is 205,000 square feet of new space under construction within this area. By contrast, the urban core of Fort Worth inside the Interstate 820 loop spans about half as …
